Finance Minister Nirmala Sitharaman presented the Union Budget 2025, announcing several key financial measures but no major new schemes. The highlight of the budget was the increase in Kisan Credit Card (KCC) loan limit from ₹3 lakh to ₹5 lakh, benefiting 7.7 crore farmers. Additionally, senior citizens received income tax relief, and certain life-saving medicines were made tax-free.
Key Announcements in Budget 2025
- ‘Pradhan Mantri Dhan Dhanya Yojana’: 1.7 crore farmers to receive skill training and technological assistance.
- Tax Relief for Senior Citizens: Income tax exemption limit increased from ₹50,000 to ₹1 lakh.
- Rent Tax Exemption: Annual exemption limit increased from ₹2.40 lakh to ₹6 lakh.
- Life-Saving Medicines Tax-Free: 36 critical medicines removed from the tax bracket.
- Dairy & Fisheries Sector Support: Farmers in these sectors can now avail loans up to ₹5 lakh.
- Higher Education Incentives: 10,000 fellowships to be granted at IITs and IISc.
- Income Tax Filing Deadline Extended: The income tax return (ITR) filing window increased from 2 years to 4 years.
While the government focused on extending benefits to farmers, senior citizens, and industries, it did not introduce any major new welfare schemes.
Review of Previous Budget Announcements & Their Status
Last year, the government announced several ambitious schemes, including:
1. NPS ‘Vatsalya’ Scheme
- What is it? Parents could open a pension account for children below 18 years, which would later convert into a regular NPS account.
- Launch Date: July 23, 2024 (Announced), September 18, 2024 (Started).
- Status: Despite India’s 43 crore under-18 population, only 75,000 applications have been received, covering a mere 0.17% of the target population.
2. Rooftop Solar Scheme
- What is it? Installation of solar rooftop systems in 1 crore homes under the PM Surya Ghar Free Electricity Scheme.
- Launch Date: February 1, 2024 (Announced), February 15, 2024 (Started).
- Target: 1 crore homes by March 2027.
- Status: Only 5 lakh applications received; 1 lakh approved—just 4.1% progress against the required 24 lakh installations by December 2024.
3. Pradhan Mantri Mudra Loan Scheme
- What is it? Increase in loan limit for MSMEs from ₹10 lakh to ₹20 lakh, with a 5-year repayment tenure.
- Launch Date: July 2024 (Announced), October 2024 (Started).
- Target: ₹2.3 lakh crore in loans.
- Status: Over ₹3.6 lakh crore disbursed (156% of the target), but 32% of borrowers are now defaulters, raising concerns over non-performing assets (NPA).
Employment & Job Creation Initiatives: Progress & Delays
A. Pradhan Mantri Internship Program
- What is it? 20 lakh youths per year to receive internships at India’s top 500 companies with a ₹5,000 monthly stipend.
- Status: Was scheduled to launch on December 2, 2024, but was put on hold with no new announcement.
B. First Job Bonus Scheme
- What is it? Employees registering with EPFO for the first time to receive a ₹15,000 bonus in three installments.
- Target: 2.1 crore youths to benefit.
- Status: First installment not credited yet.
C. Employers’ EPF Reimbursement Scheme
- What is it? ₹3,000 per month reimbursement to companies for two years for hiring new employees.
- Status: Employer reimbursements yet to be credited, even though registration closed on January 15, 2025.
D. Job Creation in Manufacturing Sector
- What is it? Government incentive for first-time employees and employers based on 4 years of EPFO contributions.
- Target: 30 lakh new jobs.
- Status: Deadline for employee registration (January 15, 2025) has passed, but incentives are yet to be finalized.
Final Take: Budget 2025 Prioritizes Farmers & Tax Relief, But Lacks Bold Reforms
While Budget 2025 introduced incremental benefits for farmers, senior citizens, and industries, it lacked the big-ticket announcements seen in previous years. Moreover, many of last year’s ambitious schemes are struggling to meet their targets, raising concerns about implementation efficiency.
With farmers, small businesses, and job seekers being the core focus, the government has chosen continuity over radical change, ensuring welfare benefits reach the grassroots. However, with key initiatives lagging behind their goals, effective execution remains the biggest challenge.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.